CJ withdraws bid for McDonald’s Korea

[THE INVESTOR] South Korean food and entertainment giant CJ Group on Sept. 21 was confirmed to have not participated in the final bidding to acquire McDonald’s Korean unit.

Two consortiums, led by Maeil Dairies Industry and NHN Entertainment, respectively, joined the final bidding that closed on Sept. 14 in the US.

“We didn’t participate in the final bidding due to deal conditions,” a CJ official was quoted as saying. “We will continue seeking merger and acquisition opportunities across affiliates.”

Maeil, Kora’s leading diary maker, has created a consortium with US-based private equity fund Carlyle Group, while NHN Entertainment, a local online game and service provider, is joining the bidding with KG Group, the operator of mobile payment service Kpay.

Some 400 McDonald’s outlets in Korea have been put up for sale. The deal price is valued at about 500 billion won (US$439.44 million).

TPG Capital, another US-based private equity fund that has been cited as one of the potential bidders, reportedly did not participate.

Industry watchers predict a preferred bidder could be announced this week.

By Lee Ji-yoon (jylee@heraldcorp.com)